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RES Croatia to Brussels: Renewables have no future in Croatia

RES Croatia, together with SolarPower Europe and WindEurope, has sent a letter to the European Commission to raise concerns about the crisis in Croatia’s renewable energy sector.

The three associations emphasized that for several years, 60 projects for investments in solar, wind, geothermal, and batteries have been blocked, and that if nothing is done, many of them would soon be abandoned.

Without urgent deblocking of renewable energy projects, Croatia will lose investments, increase fossil fuel imports, which already exceed 25%, and miss the European Union’s and national target of at least 42.5% of energy consumption coming from renewables by 2030, according to Renewable Energy Sources of Croatia (RES Croatia), SolarPower Europe and WindEurope.

The national organization warned that the government is gradually phasing out subsidies for electricity prices for citizens and entrepreneurs. At the same time, the development of renewable energy sources as the only sustainable solution for lower bills and lowering imports is at a complete standstill, it added.

Projects with a total capacity of 3.5 GW and investments of EUR 3 billion are blocked

Croatia is currently subject to infringement proceedings due to delays in implementing the European Union’s RED II and RED III directive. They aren’t just a piece of paper, but a mechanism to ensure energy security and independence, which is of strategic interest for Croatia and its citizens, RES Croatia underscored.

The organizations are urging the European Commission to use its tools to demand from the government to determine the grid connection fee, but at EUR 0 per kWh, open up the balancing market for renewable energy producers, and integrate battery energy storage systems (BESS) and electrification into national planning.

Currently, 60 projects for solar power plants, wind farms, geothermal power plants, and batteries with a total capacity of 3.5 GW and investments of EUR 3 billion are blocked, according to the letter, accompanied by an annex.

The domestic industry is unable to sign long-term PPAs

For these projects, the state has already charged EUR 25 million through energy approvals— the first in a series of documents that requires payment to the state, which, due to the blockage, are beginning to expire at the end of this year.

Organizations stressed that these projects are permanently losing the paid money, while local communities are losing significant revenues that would have been allocated to them from the implementation of renewable energy projects.

They also drew attention to the domestic industry’s inability to sign long-term power purchase agreements (PPAs) with renewable energy producers, securing more favorable market conditions and thereby increasing its competitiveness in European and global markets.

Of note, the European Commission advised Croatia in June to speed up the installation of renewable energy capacities.

If nothing is done, projects of as much as 2.5 GW overall will be abandoned as early as next week

The associations pointed out that the development of new projects larger than 10 MW has stalled since 2022 because the Croatian Energy Regulatory Agency (HERA) has not set a transmission network connection fee for renewable power plants.

Instead, they added, Croatia’s transmission system operator (TSO) HOPS is trying to shift the costs of network modernization – planned over ten years ago and not related to new projects – to new renewable energy projects.

The minister of economy said in March that the upcoming connection fee would be EUR 0 per kW

It is increasing the project cost by 30% to 40%, making them unprofitable, RES Croatia said.

Such a model for financing the network is not from European practice, because 80% of member states rely on EU funds and their national budgets, rather than on producers.

They also recalled that the minister of economy announced in March that a connection fee would be set at EUR 0 per kW and that developers would be offered flexible contracts to encourage investment in battery storage. But that promise has not yet been fulfilled.

The three organizations warn that if nothing is done, projects of up to 2.5 GW altogether would be abandoned as early as next week after HOPS’s decision,. It means companies would withdraw from the Croatian market and lose millions in investments that would have permanently lowered energy prices in the country, RES Croatia claimed.

The balancing market is not functional

An additional problem is the non-functional balancing market, according to the letter.

HEP Proizvodnja, a subsidiary of state-owned utility Hrvatska Elektroprivreda (HEP), is the dominant provider of balancing services, and often the only one. HOPS is legally obliged to ensure market-based procurement of these services, yet it is itself a wholly owned subsidiary of HEP.

It creates an obvious conflict of interest and undermines market competition, the signatories underlined.

“Despite the demonstrated technical ability of solar and wind power plants to provide balancing services, HOPS doesn’t allow these plants to participate in balancing markets. As a result, HOPS frequently activates extremely expensive balancing resources, often at maximum regulated prices even during hours of high renewable generation and positive market prices,” the letter reads.

Croatia has no serious electrification plan

The organizations pointed out that such pricing constitutes a clear violation of the EU principle that balancing services must reflect only the actual costs incurred by the TSO.

They also stressed that Croatia lacks a concrete electrification plan. In 2022, renewable energy accounted for only 2.4% of final energy consumption in transport, with electricity from renewables contributing just 0.2%.

The target for renewable electricity in transport by 2030 is only 5.8%, reflecting limited ambition compared to the EU ambitions, according to the letter.

Electrification of railways could significantly reduce emissions and accelerate the transition, however, it remains an untapped potential, the signatories organizations noted.

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North Macedonia kicks off project to replace taxis with electric vehicles

North Macedonia plans to subsidize the purchase of 200 electric vehicles for taxi drivers to improve urban transportation and reduce air pollution.

The country’s first move toward electrifying public transportation was announced last year by Prime Minister Hristijan Mickoski, who said 100-120 electric buses would be purchased.

Now, in Skopje, the Ministry of Environment and Spatial Planning and an association of cab drivers have presented a project to subsidize the first 200 electric vehicles for them, as part of efforts for cleaner, quieter, and more efficient urban transportation for the citizens of Skopje and the entire country.

The two sides signed a memorandum of cooperation.

The average price of electric cars in the program would be EUR 28,000

Of note, Skopje is one of the cities with the most polluted air in the world.

According to Izet Mexhiti, First Deputy Prime Minister and Minister of Environment and Spatial Planning, the project represents a concrete and important step toward transforming urban transportation. He added it is part of the strategy to fight air pollution and improve the quality of life in urban areas.

Photo: Ministry of Environment and Spatial Planning

The ministry and the union presented an electric vehicle that meets high environmental standards – without polluting emissions or noise, and with high energy efficiency. Mexhiti stressed that such vehicles would, in several phases, replace the current diesel, petrol, or natural gas vehicles, bringing significant benefits to citizens, taxi drivers, and the environment.

The average price of the said electric cars is EUR 28,000, putting a total cost for 200 vehicles at about EUR 5.6 million. The ministry’s subsidy will be 15% or around EUR 840,000 in total.

There will be a significant reduction in noise pollution

Mexhiti asserted that the replacement of cabs would result in a reduction of more than 2,700 tons of CO2 emissions annually, an effect equivalent to planting over 120,000 trees. He claimed urban noise would be substantially decreased, especially in residential areas.

The official recalled that his ministry has launched a car-sharing system in Skopje with the first 100 electric vehicles and a public system for electric scooters and bicycles in several cities.

In cooperation with the European Union, through the EU for Clean Air program, six electric buses were donated to the City of Skopje, capacities to monitor air pollution have been increased, and tens of thousands of seedlings have been planted across the country, Mexhiti added.

According to Abdullah Rushiti, the president of the union, the greatest benefit of the project is the clean air for the citizens. Three to four thousand taxi drivers operate in Skopje every day, which adds significantly to pollution, he pointed out.

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EU opens energy, environment cluster in accession talks with Albania

Albania officially started negotiations with the European Union on the so-called cluster 4, encompassing the green agenda and sustainable connectivity. It is joining Montenegro and Serbia, which haven’t yet closed any of the four chapters in the group: transport policy, energy, trans-European networks, and environment and climate change.

The Council of the EU held an accession conference with Albania and declared the opening of formal talks on cluster 4.

“Enlargement is at the top of our priorities as a geopolitical necessity for the EU. I am happy that we took a next step today with Albania. This is another clear proof of the country’s path towards European integration. I look forward to holding more meetings in the coming months with Albania and with other candidate countries to move forward the EU’s enlargement,” said Minister for European affairs of Denmark Marie Bjerre, who led the European Union’s delegation. Her country is currently holding the six-month presidency of the Council of the EU.

Rama: Our challenge is to reinvent ourselves

Prime Minister Edi Rama and his team represented Albania at the event, in which European Commissioner for Enlargement Marta Kos participated as well.

“Today we opened another cluster, it’s, as a matter of fact, five clusters in 11 months. In my understanding, it’s a record. And we are looking forward to opening the last cluster before this year ends… Environment is today a really pressing issue, and demands are challenging even for member states to keep the standards and to protect the standards. So, our challenge is to reinvent ourselves,” Rama said at a press conference with the two EU officials.

No chapters from cluster 4 closed yet in Western Balkans

The chapters in cluster 4, on the green agenda and sustainable connectivity, are transport policy (14), energy (15), trans-European networks (21) and environment and climate change (27). The trans-European networks comprise Trans-European Networks for Energy (TEN-E), Trans-European Networks for Transport (TEN-T) and Trans-European Networks for Telecommunications (eTEN).

As for the rest of the Western Balkans, Montenegro opened the first three in 2015 and the remaining one in 2018. It started its accession talks in 2012. The EU grouped 33 chapters into six clusters in 2020, while 34 and 35 are separate.

Albania is third in the region to open cluster 4

Serbia, which started negotiations in 2014, launched cluster 4 in late 2021. Notably, neither closed any chapters in the group. Montenegro closed seven in total, compared to just two on Serbia’s list.

Albania opened accession negotiations in 2022, as did North Macedonia. The former didn’t close any chapters yet and the latter didn’t even open a single one. Bosnia and Herzegovina is a candidate but it still didn’t start negotiations. Kosovo* is only a potential candidate.

EU urging tangible progress against environmental crimes

Among other points in its common position regarding the talks being launched, the EU urged Albania to accelerate renewable energy deployment by completing the necessary rules and regulations on permitting. The negotiators from the administration in Brussels said the Electricity Integration Package (EIP) needs to be fully implemented as well.

Albania has to align with EU acquis on environmental crimes and make tangible progress, especially against wildlife crimes, deterioration of habitats, illegal shipment or dumping of waste, pollution crimes and illegal trading in hazardous substances, the document reads.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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Environmental approvals for 403 MW of wind power on Montenegrin mountain

Companies intend to build wind power plants of 403 MW in total on Sinjajevina mountain, a vast pastureland for which activists and locals have been demanding to be protected. The projects have obtained a green light from the Environmental Protection Agency of Montenegro.

After the government leased land for wind parks Sinjajevina Part 1 and Sinjajevina Part 2 to two domestic consortia and issued the urban planning and technical requirements, the developers chalked up another win. They obtained approvals almost simultaneously for their environmental impact reports from the Environmental Protection Agency of Montenegro.

The planned investments on the eponymous mountain in the country’s north are for 112.2 MW and 290.4 MW, respectively. A group led by Energy 2 is developing Sinjajevina Part 1 in Lipovska Bistrica in Kolašin municipality. The other project, with a firm called N1 at the helm, is in the territories of Kolašin and Šavnik and the villages Lipovo, Krnja Jela, Boan, Tušinja and Timar.

Local firms Sistem-MNE and Permonte are in both consortia

The other members of both consortia are Sistem-MNE and Permonte. All the firms are based in the capital Podgorica.

Importantly, the Environmental Protection Agency noted that the two reports are almost identical and even with the same photographs. Some were downloaded from the internet and there are no pictures from the designated locations, the commission stressed.

No cumulative assessment

The agency also highlighted the lack of a cumulative assessment for the two projects. The developers replied that they are two related phases of the same project and that the data is from the same set of field research.

Both groups opted for Siemens Gamesa wind turbines of 6.6 MW. Sinjajevina Part 1 is expected to generate 392 GWh, compared to 944 GWh for Sinjajevina Part 2, the documentation shows.

The agency accepted the proposed measures to prevent, lower or remove harmful impacts on the environment. They include the utilization of existing roads as much as possible, without building new ones, and avoiding the felling of trees and removal of shrubs.

Bats can be protected by lowering speed or halting turbines in critical periods

The operators will need to monitor bird nesting in May and June to detect and counter any deterioration. In their reports, they also suggested stopping or slowing down rotors between 11 pm and 2 am when bats are the most active in June and July, except during rain and strong winds.

Sinjajevina spans more than 1,000 square kilometers, dominated by pastureland. Initiatives have been launched to declare it a nature park and include it in the Natura 2000 network.

Environmentalists and the local population are opposing a plan to set up a military training ground. They insist on the preservation of nature and traditional agriculture in the area.

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Turkish oil company Tüpraş to produce sustainable aviation fuel

Oil refiner Tüpraş is working on a technology for biofuel from algae and yeasts, using solar energy. The Sunfusion project involves processing into sustainable aviation fuel – kerosene – and green alternatives for vessels. It received EU support and includes partners from Greece, France, Germany, Norway and Serbia.

Istanbul-based Türkiye Petrol Rafinerileri AŞ (Tüpraş) has several decarbonization projects underway, counting on the expansion of green energy markets. One of the endeavors is Sunfusion – advancing biofuel production from purified microalgae and oleaginous yeasts by utilizing state-of-the-art solar technologies.

The project, which runs until the end of 2028, received EUR 3 million through the European Union’s Horizon Europe program. Centre for Research and Technology Hellas (CERTH), known also by its Greek acronym EKETA, is the coordinator.

Ten partners include the Middle East Technical University (METU/ODTÜ), located in Ankara, Aristotle University of Thessaloniki (AUTH) and Foodscale Hub (FSH), which is in Novi Sad, Serbia. The rest are from France, Germany and Norway.

Solar-to-biocrude efficiency must top 50%

Tüpraş, the largest oil refiner in Turkey, is majority-owned by Koç Holding and its related businesses. It launched Sunfusion to develop the conversion of microalgae and oleaginous yeasts using the hydrothermal liquefaction (HTL) method. Among the goals is to minimize costs, emissions and waste and achieve a solar-to-biocrude efficiency target of more than 50%.

The company and its partners intend to cultivate high-lipid, low-nitrogen microalgae and yeasts

The initiative involves photobioreactors, open raceway ponds and a solar thermal system supplying energy for the process. The company and its partners intend to cultivate high-lipid, low-nitrogen microalgae and yeasts.

Hydrotreatment units would have fractionation capabilities, for refining the biocrude into high-value fuels such as sustainable aviation fuel – kerosene – and alternative marine fuels.

First SAF supply deal in Turkey already in scope

In June, Tüpraş signed a letter of intent with Turkish Airlines for a sustainable aviation fuel (SAF) supply arrangement. They claimed that carbon emissions would be up to 87% lower than from conventional jet fuel.

“We will begin SAF production next year at our Izmir Refinery by leveraging our existing facilities. We aim to finalize the investment decision for a new unit that will increase our SAF production capacity to 300,000 tons by the end of this year. The use of SAF is becoming a necessity under both international and local regulations for the decarbonization of the aviation sector,” General Manager of Tüpraş Ibrahim Yelmenoğlu stated.

It would be both the first production and supply operations in Turkey. The company revealed at the time that it would make the SAF from bio-based feedstocks.

Tüpraş has seven projects with support from Horizon Europe

Tüpraş said it has completed 17 projects under Horizon 2020 and that seven are ongoing through Horizon Europe. The company updated its strategic transformation plan in April, placing the focus on sustainable refining, SAF, zero-carbon electricity and green hydrogen.

In the Horizon portfolio, it is conducting the Eastern Lights project for geological storage of carbon dioxide. ICO2nic is in the same segment, with carbon capture and electrochemical conversion of CO2, while the Hermes initiative is for the separation and purification of hydrogen with innovative membranes.

Also of note, one of the oil refiner’s subsidiaries took over a major solar power project in Romania early this year.

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Montenegro’s capital Podgorica preparing feasibility study for waste incinerator

Municipal waste utility Deponija has made the first step towards building a waste-to-energy facility.

Deponija, the utility in charge of waste management in Montenegro’s capital, launched a public call for the production of a feasibility study for the construction of a municipal waste incinerator within the territory of the city of Podgorica.

The task should be implemented in line with the requirements of sustainable waste management, circular economy, and the European Union’s environmental standards, the call reads.

There is only one waste incinerator in the Western Balkans

Of note, in the Western Balkans region, there is only one waste-to-energy plant, located in Belgrade. Utilizing waste to generate energy is a legitimate component of waste management hierarchy. Incinerators are present all over Europe. Croatia and Slovenia are planning to build such facilities, though some citizens oppose it.

Deponija also listed several motives for preparing the study. They include modernization of the municipal waste management system in Podgorica, reduction of the amount of waste that ends up in the landfill, and the production of renewable energy from waste.

The enterprise also aims to align its operations with the European Union’s waste management directives and gather data for potential partners and investors to assess the project.

The main goal of the study is to establish a sustainable and economically justified system for thermal treatment of municipal waste that will contribute to solving waste management problems in Podgorica, the call reads.

Deponija requested an analysis of different thermal treatment technologies

Deponija said that the study would include technological options or comparative analysis of various waste thermal treatment technologies such as incineration, refuse-derived waste, gasification and pyrolysis.

A key part of the future document is the environmental impact assessment (EIA), which will identify potential impacts on air, water, and land, mitigation measures, and monitoring.

Mayor of Podgorica Saša Mujović supported last year the idea of building a waste-to-energy plant. At that time, he was the minister of energy.